Rex Energy

11/01/2011

Rex Energy (REXX) reported that two recent wells completed into the Niobrara Shale are non commercial. These wells are the Steege #1-33H, located in Laramie County, Wyoming, and the Shapley #14-25H well, located in Weld County, Colorado.

Rex Energy said that the company will shift its resources towards other oil and liquid plays in its portfolio and will pursue “strategic alternatives” including a joint venture or outright sale of the properties. The company has 40,000 net acres prospective for this formation in Wyoming and Colorado.

08/18/2011

Rex Energy (REXX) reported that during the second quarter of 2011, the company is conducting hydraulic fracturing operations on the Steege 1-33H well drilled into the Niobrara Shale. The company expects to conduct similar operation on the Shapley 14-25 well in the third quarter of 2011. This well is also targeting the Niobrara Shale.

Rex Energy has drilled five horizontal wells to the Niobrara Shale and has been tinkering with its drilling and completion techniques. During the second quarter of 2011 conference call, the company disclosed a number of changes used for the Steege 1-33H well.

“We changed the orientation of the lateral on the Steege 1-33H well, changed the liner to plug and perf, and utilized a low pH fluid system for the fracturing. As we have previously mentioned, we want to have a 60-day-plus production history on these wells before we release results so we can have a higher degree of confidence on the decline curves and EURs.”

Rex Energy has 39,000 net acres in the Denver Julesberg Basin that is prospective for the Niobrara. The company expects well costs to be in a range from $3.5 million to $4.2 million.

05/04/2011

Rex Energy (REXX) issued an update on its Niobrara Shale operations during the first quarter of 2011. The company has a 56,000 gross or 39,000 net acre position in the Denver Julesburg Basin in Wyoming and Colorado.

Rex Energy recently completed an analysis of its 3D seismic survey in the East Silo area in Laramie County, Wyoming. The company believes that the results indicate “a high degree of natural fracturing associated with faulting” and that this will lead to higher estimated ultimate recoveries on wells on its properties.

Rex Energy obtained permits to drill two wells in the East Silo area and is currently drilling the Steege 11-31H well.

Rex Energy also conducted a similar analysis on a seismic survey done on the West Silo area and decided to let 4,016 acres of leasehold expire. The company recorded a $5 million impairment charge during the quarter due to this action.

Rex Energy has acreage in Colorado and recently reached total depth on the Shapley 14-45H Niobrara well in Weld County. The company was able to convert a 5,200 net acre lease from term to held by production by drilling the Shapley 14-45H well.